ABSTRACT
Korea is one of the major international contractors for construction projects, with a number of heavyweights in the industry, has a world-leading steel factory and indeed a whole steel city, and is one of the leading car manufacturers of the world and among the largest trading nations. The decline of the Chinese Empire after the opium wars was understood in Korea as a warning, with the lesson being to withdraw into almost complete isolation, which brought Korea the reputation of being a 'hermit kingdom'. The important element of the new policy was collaboration with the emerging conglomerates. Export orientation for the Korean industry was towards compliance with the quality and prices of the world market, an important advantage compared to import substitution policies. At the same time it brought the problem that success on world markets could only be achieved through using economies of scale.
